Invesco PowerShares, a leading global provider of exchange-traded funds (ETFs), has launched the PowerShares Global Short Term High Yield Bond ETF (PGHY) on the NYSE Arca.

PowerShares recently celebrated 10 years in the ETF industry.

The fund provides investors access to short-term, US dollar-denominated, high-yield debt that is issued globally. Constituents include sovereign, quasi-government and corporate bond securities.

Based on the DB Global Short Maturity High Yield Bond Index, the fund tracks the performance of US dollar-denominated, short-term, non-investment grade bonds with three years or less to maturity, that are issued by US and foreign corporations, as well as by supranational, sovereign or sub-sovereign government entities.

Commenting on the launch, Lorraine Wang, senior vice president of new product development at Invesco PowerShares, said: “We are excited to launch a timely product solution for income investors looking for a potential protection against rising interest rates. The PowerShares global Short Term High Yield Bond Portfolio (PGHY) provides a convenient way for investors to gain exposure to a portfolio of high-yield bonds from issuers around the globe, while taking on a relatively low level of interest rate risk.”

Joseph Becker, senior fixed-income product strategist at Invesco PowerShares, added: “Bonds with shorter maturities generally carry less duration risk than bonds with longer maturities and can help investors protect fixed-income portfolios against rising interest rates. While high-yield bonds generally carry higher credit risk, they also offer investors higher rates of income. We believe today’s exceptionally low interest rates, particularly at the short end of the yield curve, position short-term, high-yield bonds as an attractive investment for income seeking investors.”

Invesco PowerShares manages more than 140 domestic and international ETFs, with assets of over $77 billion as of March 31, 2013.

The fund and index will be rebalanced quarterly and re-weighted annually. It has an expense ratio of 0.35% and is expected to issue monthly distributions.